HPMC 2014 - Annual trends service design 2014 - Fjord

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Presented during the High Performance Marketing Conference 2014, organized by Accenture on January 23rd, 2014.

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HPMC 2014 - Annual trends service design 2014 - Fjord

  1. 1. ANNUAL TRENDS 2014 TRENDS IMPACTING SERVICE DESIGN IN
  2. 2. Old businesses will become new. Traditionally non-digital businesses will have to reinvent themselves to consider the role of digital services in their organizations. We’re entering the age of Living Services. With more things becoming connected, the living services wave will radically shape people’s lives and expectations. Change will beget change. Digital innovation does not happen on its own or without consequences.
  3. 3. TRENDS 2014 IN CONVERSATION WITH OBJECTS EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN As more objects get “smartified,” deep challenges to social conventions will emerge The lines between products and services is blurring. TELCO 3.0 WHAT PRESCRIPTION DOES THE HEALTHCARE INDUSTRY NEED? Big is back and it’s a make or break year. Digital health won’t reach critical mass until there is true innovation in the system. LIVING ARROWS UNDERWRITING DIGITAL Brands used to be control freaks but now they need to relinquish control. The insurance industry transforms. THE DISTRIBUTED HOME TO SERVE OR NOT TO SERVE Home is where your mobile is. Design to empower people, without abandoning customer service. INVISIBLE MONEY YOU ARE THE INTERFACE The transformation of money will affect commerce at every level. What does cash mean at all? Screens are out and skin is in, but we must consider human bandwidth.
  4. 4. Apple Genius Bar Expedia Last-Minute Deals LIVING ARROWS Brands used to be control freaks but now they need to relinquish control. Most-pinned items at Nordstrom Amazon Studios Kickstarter
  5. 5. LIVING ARROWS Facebook security WHAT’S GOING ON Amazon Instant crowdsourcing • We've seen brands jump on social media and Internet forums to join the conversation about them, but they can still appear as an outsider encroaching on an open discussion. • To reframe this relationship, organizations are inviting people to improve their products in more collaborative ways. Good Eggs
  6. 6. LIVING ARROWS WHAT’S GOING ON MQSFT at Art Basel • Brands need to incorporate super users into the core of the brand, while also reminding users that organizations are run by people, not just technology. • Brands are also allowing users to navigate both product and services in a way that fits their natural behavior. Dove Campaign for Real Women Microsoft
  7. 7. LIVING ARROWS LOOKING FORWARD • Companies embrace brand inclusion and coproduction even more. • By building platforms that empower people to create their own products, services and community. • People will be more in control of their own experiences, but in a way that still feels unique to the brand. • This year's buzz trend was brands learning to become more dynamic storytellers, but now they have to be better facilitators of their users' stories. • Kickstarter is an obvious hotbed, but bigger brands will begin crowdsourcing as well.
  8. 8. LIVING ARROWS FJORD SUGGESTS • Centrally controlled traditional branding is dead, as most brand interactions are now digital. • This emphasizes brand behavior. What is your brand’s body language? • Companies need to elevate their most fascinating participants and find ways to deliver and align with their values. • Showcase understanding for users that creates an almost peer-to-peer relationship between users and brands. • The brand and audience that make together, stay together.
  9. 9. Fiat eco:Drive EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN The lines between products and services is blurring. Brands must rethink their ecosystems to add meaningful value. Nespresso adidas miCoach Smart Run Uber Hudl
  10. 10. EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN WHAT’S GOING ON Hudl • Customer attention is more fragmented by multiple content/activity streams. • Brands are creating services to maintain relevance, and in doing so, disrupting both the status quo and market chains. Disney Infinity Wave • Startups and unexpected competitors (like suppliers and distributors) threaten larger corporations as they create useful services that quickly expand past their product at launch. adidas miCoach Smart Run
  11. 11. EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN Airbnb WHAT’S GOING ON Red Bull • Fjord expects more direct-to-consumer innovation with FMCG companies (Nespresso, Red Bull), which poses a question for the role of traditional retailers when brands begin to bypass them. • adidas miCoach is a service now supported by a product. • Uber or Airbnb are pure platform services—they simply provide the service infrastructure to connect people to the things they need, in a personal and easy to use way. Nespresso
  12. 12. EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN LOOKING FORWARD • Toys and gaming are sectors to watch for inspiration. • Brands will expand services to meet audience needs and thereby shatter industry boundaries. • More toys will be connected to services that grow and evolve alongside children. • We’ll see a greater number of and more extensive mash-ups in 2014. • More retail chains will continue to heavily invest in digital services, like Tesco with their Blinkbox offering and tablet, Hudl.
  13. 13. EVERY PRODUCT IS A SERVICE WAITING TO HAPPEN FJORD SUGGESTS • New services that only add to the (virtual) noise and clutter will not win people over. • Brands should embrace and consider nontraditional coupling. • Services must grow and mature with their audiences: personal investment in the brand builds loyalty. • Think through hyper-smart consumption – how will it change demand and supply? • Brands must transform from commodities to loyal partners who support us in living a meaningful life. • The new lifespan of a product is extended through digital information and intelligence.
  14. 14. Airline ticket kiosk TO SERVE OR NOT TO SERVE Design to empower people, without abandoning customer service. Ryanair My3 Airbnb Self check-out
  15. 15. TO SERVE OR NOT TO SERVE WHAT’S GOING ON Starwood Preferred Guest Service • The outsourcing epidemic is spreading. • This experience is often riddled with commercial advertising. London Underground • People are getting lost in translation. • Instead of feeling freedom, customers end up feeling frustrated and abandoned without the sole perk of saving time. TripAdvisor meta search
  16. 16. TO SERVE OR NOT TO SERVE LOOKING FORWARD • Organizations have to flip their approach: it’s about aligning around customers, not around business processes. • Fjord’s My3 project is a prime example: 50% of users reported that they called customer service less about their bill. • Self-service could streamline sectors as diverse as energy, health, travel. • Since the launch of TripAdvisor’s meta search feature their stock has nearly doubled ahead of their leading competitor and site traffic increased nearly 50%. • More services like Turkcell’s new Platinum approach: loyalty benefits with one click and the service will come to wherever they are!
  17. 17. TO SERVE OR NOT TO SERVE FJORD SUGGESTS • Reorient towards people’s experience, and identify the areas where you can deliver higher value, save customers time, and reduce customer service needs. • Understand when you still need to utilize human contact in the user journey. • Give people more control of things that used to be backstage or off limits. • Make self service moments delightful: consider planting “Easter eggs” that aren’t tied to functionality, but charm the customer. • Aggregation of data does not make a service: what extra layer is required?
  18. 18. THANK YOU MARK CURTIS MARK.CURTIS@FJORDNET.COM FJORDNET.COM @FJORD #FJORDTRENDS

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